HEVC Patent Portfolio License Briefing*

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1 HEVC Patent Portfolio License Briefing* V01/12/18 *This presentation is for information purposes only. Actual license agreements provide the only definitive and reliable statement of license terms.

2 Objective Offer an alternative license for the convenience of users enabling them to acquire patent rights necessary for the HEVC standard (see next slide) from multiple patent holders in a single transaction as an alternative to negotiating separate licenses 2

3 Coverage HEVC Standard as defined in ISO/IEC :2013(E), ITU-T Recommendation H.265 (04/2013), Recommendation ITU-T H.265 v2 (10/2014), and/or Recommendation ITU-T H.265 v3 (4/2015) 3

4 Coverage Each patent is essential to the HEVC standard (see previous slide) Patent holders submitted patents for evaluation of their essentiality by independent patent experts Worldwide coverage (including essential counterparts) Licensors include all essential patents 4

5 Coverage Attachment 1 to the License is updated regularly o See /PatentList.aspx o New Licensors and essential patents may be added at no additional royalty for present license coverage during the current term; coverage for entire term 5

6 Current Patent Owners Essential Patent Holders currently include 6 Alpha Digitech, Inc. Apple Inc. British Broadcasting Corporation Digital Insights Inc. Electronics and Telecommunications Research Institute (ETRI) Fujitsu Limited Funai Electric Co., Ltd. Hangzhou Hikvision Digital Technology Co., Ltd. HUMAX Co., Ltd. IBEX PT Holdings Industry Academy Cooperation Foundation of Sejong University Infobridge Pte. Ltd. Intellectual Discovery Co., LTD. JVC KENWOOD Corporation Korea Advanced Institute of Science and Technology (KAIST) Korean Broadcasting System (KBS) KPIC Ltd. KT Corp Kwangwoon University Industry Academic Collaboration Foundation M&K Holdings Inc. Maxell, Ltd. NEC Corporation Nippon Hoso Kyokai (NHK) Nippon Telegraph and Telephone Corporation (NTT) NTT DOCOMO, INC. Orange SA Samsung Electronics Co., Ltd. Siemens Corp. SK Planet Co., Ltd. SK Telecom Co., Ltd. SungKyunKwan University Research & Business Foundation Tagivan II, LLC The Trustees of Columbia University in the City of New York University Industry Cooperation Foundation of Korea Aerospace University University Industry Cooperation Group of Kyung Hee University Vidyo, Inc.

7 7 HEVC License Terms Decoder-Encoder Sublicenses о HEVC Products Sold to End Users by a Licensee with (a) ownership/control of the brand name or (b) if the HEVC Product bears no brand name, with discretion over decision to Sell 0-100,000 units/year = no royalty (available to one Legal Entity in an affiliated group) US $0.20 per unit after first 100,000 units each year Maximum annual royalty payable by an Enterprise (Legal Entity and Affiliates) is $25M for present coverage during the first License Term о Includes right to make, use and sell о Royalties are payable for HEVC Products from May 1, 2013 forward Other о Royalty paid for HEVC Product sublicense (referred to above) includes right to use encoders/decoders for HEVC content о Vendors of semiconductor chips or other products that contain an HEVC encoder and/or decoder may pay royalties on behalf of their customer who is a Licensee (and has responsibility for assuring payment) subject to that Licensee s annual cap

8 Term Current Term through December 31, 2020 Renewable for successive 5-year periods for the life of any Portfolio patent on reasonable terms and conditions Rate Protection on Renewal royalties for license grant or Royalty Cap will not increase by more than 20% at each renewal 8

9 Other Important Provisions Most Favorable royalty rates clause Licensee data is protected as confidential Grant-back on essential patents similar in scope to license grants 9

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